<<I don't see Seagate giving RDRT enough business, if any, to replace the amount that could be lost from WDC. Could You post a link that says Seagate will give RDRT major business? I don't think so...a 40 percent customer like WDC is a huge loss....the future looks bleak>>
It is still extremely unclear exactly what the impact of the WDC/IBM deal is. "The IBM-WDC pact isn't expected to be implemented until early 1999, so its still too fresh and details aren't out there to get an assessment for 100% of what this means. This doesn't necessarily mean Read-Rite has lost all of Western Digital's business. If we continue to execute, we should be able to continue to participate on Western Digital programs, as well as for meeting other customers' requirements as well. (John Kurtzweil, RDRT CFO May 4).
While a link is not available to support whether SEG plans to engage in major RDRT business, nor does one exist that says it won't. If anyone can replace some or all, SEG would be the one. I'll take the largest DD mfr. in the world as a new customer anyday. For all we know, the SEG business may be accretive to revenue and earnings. I don't think RDRT's future looks bleak at all, in fact, it looks very promising.
Larry |
